Hsbc Holdings Plc · LSE:HSBA
Hsbc — H1 2000 Earnings Presentation
26 slides from Hsbc's earnings presentation, 2000
Slide 1: HSBC Holdings plc 2000 Interim Results
HSBC Holdings plc 2000 2000 Interim Interim Results Results =>@ =>@A
Slide 2: 2000 interim results - overview
2000 2000 interim interim results results -- overview overview H1 H1 00 00 H1 H1 99 99 US$m US$m Operating Operating profit profit before before provisions provisions 5,442 5,442 4,995 4,995 up up 9% 9% Operating Operating profit profit before before provisions provisions (cash (cash basis) basis) 5
Slide 3: 2000 interim results - overview
2000 2000 interim interim results results -- overview overview • Capital ratios >> Tier Tier 11 9.6% 9.6% >> Total Total 14.1% 14.1% • Return on shareholders’ funds: 20.2% • Results feature: ➢ organic ➢ organic growth growth ➢ improved ➢ improved trading trading conditions conditions inin Asia Asia
Slide 4: 2000 interim results
2000 2000 interim interim results results Latin Rest of Latin North Rest of Asia- North Asia- America America America Pacific America Pacific 3.7% 4.9% 8.0% 11.3% 8.8% 14.1% Ho ng Ko ng Hong Europe Kong SAR 39.7% SAR Europe 35.3% 36.6% 37.6% Operating profit before provisions Pre-tax profit US$5,442
Slide 5: Operating income in H1 2000 exceeded US$12bn
Operating Operating income income in in H1 H1 2000 2000 exceeded exceeded US$12bn US$12bn US$m 12,000 100% 10,000 75% 8,000 6,000 50% 4,000 25% 2,000 0 0% H1 97 H2 97 H1 98 H2 98 H1 99 H2 99 H1 00 Operating income Cost : income ratio (excludin g goo dwill amortisatio n in H1 00) 2000 Interim Results
Slide 6: Attributable profit (cash basis)
Attributable Attributable profit profit (cash (cash basis) basis) US$m 5,000 4,000 3,000 2,000 1,000 0 H1 99 Net O ther Operating Provis ion Tax at ion Ot her H1 00 interest oper ating ex pens es for bad & income inc ome debts 2000 Interim Results 6 =>? =>
Slide 7: Gross customer advances (excluding Financial)
Gross Gross customer customer advances advances (excluding (excluding Financial) Financial) at at constant constant exchange exchange rates rates US$m 245,000 235,000 Includes: Korea up $236m 352% India up $71m 47% Taiwan up $123m 16% Brazil up $298m 32% 225,000 De c 9 9 Res id e n ti al Oth er Co m
Slide 8: Net interest income
Net Net interest interest income income US$m 7,000 6,500 6,000 5,500 5,000 H1 99 Europe Hong Kong North Other H1 00 SAR America 2000 Interim Results 8 =>? =>
Slide 9: Net interest income & margin
Net Net interest interest income income & & margin margin US$m 7,000 3.00% 6,000 2.90% 5,000 4,000 2.80% 3,000 2.70% 2,000 2.60% 1,000 0 2.50% H1 97 H2 97 H1 98 H2 98 H1 99 H2 99 H1 00 Net interest income Margin 2000 Interim Results 9 =>? =>
Slide 10: Other operating income
Other Other operating operating income income US$m 6,000 50% 5,000 45% 4,000 3,000 40% 2,000 35% 1,000 0 30% H1 97 H2 97 H1 98 H2 98 H1 99 H2 99 H1 00 Dealing profits Other operating income Other income as % of total income 2000 Interim Results 10 =>? =>
Slide 11: Market risk-related revenues in H1 2000 averaged US$10.7m a day
Market risk-related revenues in H1 2000 averaged US$10.7m a day Daily distribution of Market Risk Revenues - Group Treasury Centres 20 P&L frequency Number of days 15 10 5 0 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2
Slide 12: Operating expenses excluding goodwill amortisation
Operating Operating expenses expenses excluding excluding goodwill goodwill amortisation amortisation US$m 6,500 6,000 5,500 5,000 H1 99 Europe North Latin Other H1 00 Americ a America 2000 Interim Results 12 =>? =>
Slide 13: Operating expenses & cost:income ratio
Operating Operating expenses expenses & & cost:income cost:income ratio ratio US$m 100% 6,000 75% 4,000 50% 2,000 25% 0 0% H1 97 H2 97 H1 98 H2 98 H1 99 H2 99 H1 00 Operating expenses Cost : income ratio (excludin g goo dwill amortisatio n in H1 00) 2000 Interim Results 13 =>? =>
Slide 14: Operating profit before provisions excluding goodwill amortisation
Operating Operating profit profit before before provisions provisions excluding excluding goodwill goodwill amortisation amortisation US$m 6,000 5,500 5,000 4,500 4,000 H1 99 Europe Hong Kong North Other H1 00 SAR America 2000 Interim Results 14 =>? =>
Slide 15: Specific provisions charge against customer loans and advances
Specific Specific provisions provisions charge charge against against customer customer loans loans and and advances advances US$m 2,000 1.50% 1,500 1.13% 1,000 0.75% 500 0.38% 0 0.00% -500 -0.38% H1 97 H2 97 H1 98 H2 98 H1 99 H2 99 H1 00 New specific Releases & recoveries Net specific charge as % o
Slide 16: Charge for bad and doubtful debts as a % of gross customer loans
C Charge harge for for bad bad and and doubtful doubtful debts debts as as aa % % of of Gross Gross customer customer loans loans 1.5% 1.3% 1.1% 1.1% 1.0% 0.9% 0.5% 0.4% 0.4% 0.3% 0.3% 0.3% 0.0% 1992pf 1993 1994 1995 1996 1997 1998 1999 H1 00 2000 Interim Results 16 =>? =>
Slide 17: Operating margin and bad debt charge
Operating margin Bad debt charge (Operating profit before provisions, (Bad debt charge as % of excluding goodwill amortisation, risk-weighted assets) as % of risk-weighted assets) 4.0% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.0% 0.0% 0.0% 1993 1993 1994 1994 1995 1995 1996 1996 1997 1997 1998 1998 1999 1999
Slide 18: HSBC: North America
HSBC: HSBC: North North America America • Republic New York integration making good progress ➢ cost ➢ cost savings savings on on target target • Wealth management income in the US and Canada growing ➢ in ➢ in US US upup 18% 18% year year on on year year ➢ US ➢ US life life insurance insurance revenu
Slide 19: HSBC: Hong Kong SAR & rest of Asia Pacific
HSBC: HSBC: Hong Hong Kong Kong SAR SAR & & rest rest of of Asia Asia Pacific Pacific • Revenues in Hong Kong SAR rose strongly: ➢ Credit ➢ Credit cards cards in in issue issue grew grew by by 33% 33% ➢ Insurance, retail investment funds and ➢ Insurance, retail investment funds and securities securi
Slide 20: HSBC: Europe
HSBC: HSBC: Europe Europe • Life, pensions and investments revenues in UK up by 9% in H1 00 ➢ growing ➢ growing reputation reputation for for transparency transparency and and fairness fairness • CAT standard mortgage introduced in UK with improved pricing ➢ variable ➢ variable rate rate currently c
Slide 21: HSBC: Latin America
HSBC: HSBC: Latin Latin America America • Loan business being expanded in Brazil ➢ improving ➢ improving economy economy lowering lowering interest interest rates rates • Insurance: ➢ strong ➢ strong results results in in Brazil Brazil and and Argentina Argentina 2000 Interim Results 21 =>? =>
Slide 22: HSBC: Investment Banking
HSBC: HSBC: Investment Investment Banking Banking • Growth in funds under management ➢ Private ➢ Private Banking; Banking; US$103 US$103 billion billion ➢ Asset ➢ Asset management: management: US$ US$ 93 93 billion billion ➢ Total funds under management in ➢ Total funds under management in HSBC: HSB
Slide 23: HSBC: First half developments
HSBC: HSBC: First First half half developments developments • CCF acquired 28 July 2000 ➢ aa platform ➢ platform for for the the euro-zone euro-zone ➢ major ➢ major high high net net worth worth and and corporate corporate customer customer base base ➢ HSBC ➢ HSBC shares shares listed listed on on t
Slide 24: hsbc.com e-business update
hsbc.com hsbc.com e-business e-business update update • Personal banking: ➢ Brazil ➢ Brazil :: live, live, 215,000 215,000 customers customers ➢ USA ➢ USA :: live live in in April April ➢ UK ➢ UK live: live: firstdirect.com, firstdirect.com, 220,000 220,000 customers customers :: HSBC HSBC Bank Bank
Slide 25: HSBC: Outlook
HSBC: HSBC: Outlook Outlook • The outlook for many of HSBC’s markets remains favourable ➢ US ➢ US economy economy continues continues to to underpin underpin world world economic economic growth growth • HSBC has: ➢ aa broad ➢ broad spread spread of of business business ➢ an ➢ an excellent excellent
Slide 26: Your world of financial services
=>@ =>@A YOUR WORLD OF FINANCIAL SERVICES